MinisterofDOOM wrote:There shouldn't be a cost to (or not to) subsidize. That thing's running an early-android Qualicomm processor! It's ANCIENT. Severely outdated. It's particularly stupid for a phone running android 2.2, since that hardware doesn't support half of what Froyo adds to the OS. It's like selling an Apple ][ for $1000 today. It's not worth money anymore. That's a "free with contract" level phone. Even purchased outright it's not worth more than $50.
One of the biggest problem with Android right now is that older hardware has been left behind by the software (both OS and applications). Paying money for one of the phones that got left behind is a joke. Can't run the latest version of Maps (which makes massively worthwhile improvements). JIT doesn't work right. Flash 10.1 won't run on it. Might as well pay someone $150 for a hacked mytouch 3G. At least the Mytouch gets a trackball. Text editing in android without a trackball sucks trackballs.
You're derping a bit on this one. Watch the video. Everything functions quite smoothly. The worst Android phone I've experienced is the HTC Hero running 2.1, and its an entire universe apart. As for being left behind, if you're already spending $100 or more each year for a hardware upgrade, what exactly are you losing? Is your phone suddenly going to wake up one morning and decide that you're no longer able to make calls?
You're exaggerating the disadvantages because you come from the perspective of someone who plays around with their electronics as a hobby.
I would also appreciate a trackball or some arrow keys, but the only reason Android phones have a trackball is because the original Android OS (prior to release) was designed to mimic Blackberry. No touch screen was intended until the iPhone came out. Most people with Android phones don't use their trackball either, though if I had one I occasionally would for things like text editing. A Blackberry-style keyboard would be ideal for me.
Now, I know most Android kids are launching cruise missiles with their phones and developing custom ROMs and generating holographic virtual girlfriends from the palm of their hand, but that accounts for quite a minority of users. Most are casual out-of-the-box users (iPhone) or business-oriented (Blackberry, the largest single share of the market).
Can I listen to music? Yes.
Can I talk to my friends and family? Yes.
Can I watch videos? Yes.
Can I read and respond to email? Yes, though the Blackberry had more e-mail features. Android's built-in mail client has as few features as the 1994 release of Eudora, but it does work.
Can I do all of those things without the phone hanging, freezing, or choking? Yes.
If I had an HTC Evo, would I be doing any of these things differently? Absolutely not. I'd use a more expensive phone in the exact same way. If I had a Boss 302 Mustang, I'd still drive 10mph over the speed limit on public roads.
Do I want more than that? Well, I wouldn't mind having more, but most of the time my phone sits idle. At some point, the money you spend on technology gets dramatically higher while gains in functionality and performance are smaller and smaller. A wise consumer looks for the sweet spot in the market and finds a suitable compromise. Likewise, a smart auto enthusiast buys a used car from the last 5-10 years.
In other words, you haven't mentioned anything that actually detracts from the standard usability of the phone. And I'm going to have to reluctantly agree with the iPhone fanboys on this one: Adobe Flash is awful. In the future Flash will become more mobile-friendly, maybe with a dual-core or quad-core phone, or when Adobe decides to efficiently develop Flash.
If you're comfortable with spending an extra $650 every year so you can geek out, then that's great, but I care so little about being on the cutting edge that I'd rather give a couple hundred bucks to charity and pocket the rest. My phone is primarily a telephone that happens to do other things. Its not the center of my world or a hobby.
Next, you're going to tell me the 1990 Maxima is insufficient as a mode of transportation because the new Focus has MyTouch, a bigger trunk, and gets 40mpg.
If having an expensive phone makes you feel good, do it, but don't mistake being an advanced user for being a wiser one. If there aren't other things this in this world you'd rather spend $600 on, then so be it.
That's a good chunk of money that could go into a 401k.
[I also hold on to my PCs for years.]
We don't have the issue anymore since we migrated to another carrier. 
